The new adjustment in electricity tariff has confused and enraged millions of Nigerians.
NERC has insisted it wasn t a tariff increase per se, but an adjustment by N2 and N4 to reflect inflation and fluctuation in foreign exchange. On the contrary, the tariff for customers on service bands D and E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the federal government. In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation and movement in forex, NERC had said.
By Constance Athekame
Abuja, Jan. 7, 2021 The Minister of Power, Mr Saleh Mamman, has directed the Nigerian Electricity Regulatory Commission (NERC) to inform all Electricity Distribution Companies(DISCOs) to revert to tariffs that were applicable in Dec. 2020.
Mr Aaron Artimas, Senior Special Adviser, Media and Communications to the Minister of Power, made this known in a statement in Abuja on Thursday.
He said that the reversal to the old tariff was to promote a constructive conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc Committee).
“I have directed NERC to inform all DISCOs that they should revert to the tariffs that were applicable in December 2020 until the end of January 2021 when the FGN and Labour committee work will be concluded.
He said that the reversal to the old tariff was to promote a constructive conclusion of the dialogue with the Labour Centres (through the Joint Ad-Hoc Committee).
“I have directed NERC to inform all DISCOs that they should revert to the tariffs that were applicable in December 2020 until the end of January 2021 when the FGN and Labour committee work will be concluded.
“This will allow for the outcome of all resolutions from the Committee to be implemented together,” he said.
‘False claim’
The minister spoke against the backdrop of the report that electricity tariff had been increased by 50 per cent.
Only a couple of days ago, Fitch Ratings released its credit ratings for Nigeria, placing Nigeria at a “B” rating. For many who may not understand, a Fitch “B” rating signifies a degrading financial situation and highly speculative financial market in the country in question.
Fitch carries out sovereign credit ratings to determine a country’s ability to meet its debt obligations. Its ratings equally help to provide investors with insight into the level of risk associated with investing in a particular country. What a “B” rating does for Nigeria is signal to investors that risk levels are high, which in turn makes them either take their funds to less speculative markets or require excessive risk protection when investing in Nigeria. Consequently, the cost of funding government projects increases.
A file photo of Minister of Power, Sale Mamman
The Nigerian Electricity Regulatory Commission has been directed to suspend the planned bi-annual adjustment in electricity tariff until the joint ad-hoc Committee concludes their discussion by the end of January.
The directive was contained in a statement by the Minister of Power, Sale Mamman, on Thursday.
NERC had on Monday, issued a circular regarding the planned bi-annual minor review of electricity tariff across all bands between N2 per kWh and N4 per kWh.
The minister, in the statement, explained that the order is to ensure that a constructive conclusion is reached between the labour unions and the Federal Government.